Negotiating Buyer Resistance Chapter 12 Negotiating Buyer Resistance

LEARNING OBJECTIVES Describe types of buyer resistance Outline buyer resistance negotiation strategies Discuss specific methods for negotiating buyer resistance Describe ways to deal with negotiation-trained buyers

The Six-Step Presentation Plan FIGURE 12.1: NEGOTIATION The Six-Step Presentation Plan Step One APPROACH Step Two PRESENTATION Step Three DEMONSTRATION Review Strategic/Consultative Selling Model Initiate customer contact Determine prospect needs Select product or service Initiate sales presentation Decide what to demonstrate Select selling tools Initiate demonstration Anticipate sales resistance Plan negotiating methods Initiate double-win negotiations Plan appropriate closing methods Recognize closing clues Initiate closing methods Suggestion selling Follow through Follow up calls Step Four NEGOTIATION Step Five CLOSE Step Six SERVICING THE SALE

FIGURE 12.2: THE NEGOTIATION Strategic planning for negotiation of buyer resistance Actions during negotiations 1. Anticipate buyer resistance. 2. Review common types of resistance. 3. Review methods of negotiating buyer resistance. 4. Prepare a negotiation worksheet. 1. Recognize and understand verbal and nonverbal clues. 2. Validate the problem. 3. Find some point of agreement. 4. Do not allow anger to surface. 5. Answer customer’s concern. 6. Be alert for closing clues.

COMMON TYPES OF RESISTANCE Related to need for the product Related to product Related to source Related to price Related to time

NEGOTIATING PRICE Salesperson Tactics Customer Tactics Add value by explaining the cluster of satisfactions Discuss price confidently Discuss value rather than price Discuss the relationship of price and quality Discuss difference between price and cost Budget limitation Take it or leave it Split the difference

FIGURE 12.3: TIP OF THE ICEBERG Price Assistance from salesperson after the sale Favorable credit terms Excellent technical assistance Quick delivery Comprehensive warranty

FIGURE 12.4: BALANCE PRICE AND VALUE (Dollars) Value (Benefits)

GENERAL STRATEGIES: NEGOTIATING BUYER RESISTANCE Anticipate resistance Know product/service value Prepare Understand problem Validate problem Find some point of agreement Maintain relationship strategy careful of anger

METHODS OF NEGOTIATION Direct denial Indirect denial Questions Superior benefit Demonstration Trial offer Third-part testimony

Negotiations Worksheet FIGURE 12.5: WORKSHEET Negotiations Worksheet Type of objection Product Time Price Customer’s objection “Fifteen cases of olives will take up valuable space in my receiving room. It is already crowded.” “This is a poor time of the year to buy a large order of olives. People are not buying at this time.” “I would rather not tie up my money in a large order.” Possible response Direct denial: “You will not have to face that problem. With the aid of our merchandising plan you can display ten cases immediately on the sales floor.” Indirect denial: “I agree that it has been a problem in the past, but consumer attitudes seem to be changing.. ... We will supply you with point-of-purchase material that suggests new ways to use this high-profit item.” Superior benefit: “As you know, olives represent a high-profit item. The average margin is 26 percent. With the addition of our $1.00 per case allowance the margin will rise to about 30 percent. This order will give you a good return on your investment.”